Bob Evans Farms, Inc. operates 579 restaurants in 18 states and produces fresh and fully cooked sausage products, fresh salads, and related products distributed to grocery stores in the Midwest, Southwest, and Southeast. For a recent 3-year period Bob Evans Farms reported the following selected income statement data (in millions of dollars).

Instructions
(a) Compute the percentage change in sales and in net income from 2005 to 2007.
(b) What contribution, if any, did the company's gross profit rate make to the decline in earnings?
(c) What was Bob Evans's profit margin ratio in each of the 3 years? Comment on any trend in this percentage.
(d) The chief executive officer's letter stated that the company continued to invest prudently in restaurants, opening 10 new restaurants in 2007, compared to 20 openings in 2006. What effect would you expect this change to have on return on assets? Calculate the company's return on assets for 2006 and 2007 to see if it reflects the increase in number ofstores.

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2007 2006 2005 $1,460.2 1,654.5 482.1 Sales Cost of goods sold Net income Total assets $1,584.8 469.7 54.8 1,185.1 443.2 60.5 37.0 1,197.0 1,150.9